Dubai Real Estate Rules 2025: Find a complete guide

Dubai Smart Rental Index is an AI-driven tool implemented in January 2025 by the Dubai Land Department (DLD) that computes fair rent, leveraging real-time data. It considers quality of building, location, facilities, market trends, etc., and decides what rent increment would be appropriate—limited to 20% if the property is falling way below average in the market. In other words, transparency and trust all over again.

The index assigns a star rating to buildings, which also provides renters with transparency on quality – and therefore strength in  negotiating for an appropriate price.

Stricter Rent Hike Rules

Smart Rental Index is firmly established as the standard for rent increase thresholds. Here’s the breakdown:

• <10% below market: 0% increase
• 11–20% below market: 5% increase
• 21–30%: 10% increase
• 31–40%: 15% increase
• 40% under market value: 20% or more price increase

Notice of lease renewal must be delivered in writing at least 90 days before the end of an expired or expiring term to be effective

AREA	RENTAL YIELD
Dubai Investments Park (DIP)	~9.4% – 11%
International City	~8.5% – 9.2%
Dubai Silicon Oasis (DSO)	~8.4% – 9.0%+
Jumeirah Village Circle (JVC)	~7.8% – 9% (apartments)
Discovery Gardens	~7.9% – 9%
Dubai Sports City	~8.3% – 8.8%
Jumeirah Lake Towers (JLT)	~9.1% (studios)
Dubai Production City (DPC)	~8.3%

 

BENEFIT?

The Smart Rental Index ensures rent increases are based on real market data, preventing unjustified hikes. Tenants now enjoy greater transparency and stability, making budgeting easier.

Opportunities in Dubai freehold zones have changed drastically for the better to create more investment opportunities. And for this, around 457 plots on Sheikh Zayed Road and Al Jaddaf will be turned into full ownership transfer neat leasehold to freehold against a 30% conversion fee based on the valuation. So these areas will offer an investment chance to the buyers to get a property with full ownership.

BENEFIT?

With expanded freehold zones, more residents and businesses (even from selected free zones) can own property outright. This gives expatriates and companies a stronger sense of permanence and investment security.

Under the new law, all off-plan projects now need to be safeguarded by a government-regulated escrow account that would protect buyer funds. These measures, along with stage-based approvals and developers being held more accountable, protect buyers.

BENEFIT?

Mandatory escrow accounts protect buyers’ money until construction milestones are met. This reduces the risk of losing funds to stalled or failed projects.

• Title Deeds, Property Register, Contract signature and Renewal.
• Improved realtor validation
• Resolution of disputes has to be quick and fast because there is a dedicated tribunal for GST which settles the disputes

BENEFIT?

Dedicated real estate tribunals and digitized processes mean legal disputes are resolved more quickly, saving people months of uncertainty and stress.

Real estate tokenization through blockchain—Dubai has entered the era of blockchain, and now the DLD, along with Dubai regulators, has given a thumbs up to fractionalization of property rights into digital tokens governed by clear legal frameworks.

The June 2025 update from VARA has it in writing, with property tokens to be officially classified as Asset-Referenced Virtual Assets (ARVAs) licensed for token issuance, obligatory disclosure, and minimum-capitalization thresholds & access to regulated exchanges.

Notably, a tokenized villa in Prypco Mint took only five minutes to sell, signalling the increasing appetite for models like these.

BENEFIT?

Property tokenization lets people invest in real estate with smaller amounts by buying digital fractions of properties, making property ownership accessible to a wider range of investors.

The fact that service fees will be higher by about 10%, as maintenance and utility costs rise, is in the pipeline. This will enable the varying movements to become more transparent, with the DLD Service Charge Index being well-documented as part of this initiative.

On the other hand, more territories are now open up to foreign ownership, using streamlined procedures, specifically in the developed elements of the emirate.

BENEFIT?

The Service Charge Index ensures maintenance and service fees are transparent and capped against unfair rises, helping homeowners manage costs better.

Dubai is set to make the city more livable and for this, the addition of 17,000 affordable housing units strategically planned across six key areas, including Al Twar 1, Al Leyan 1, Al Mueisim 1 and Al Qusais Industrial 5 and more (only 4 are officially announced in Dubai).

These residential projects will cater for the needs of middle-income residents, offering them access to well-built, modern homes without the premium price tag because costly property has also been a bottleneck for buyers.

Also with close proximity to public transport, schools, and healthcare centres, these affordable units will help balance Dubai’s real estate market, making it possible for more families and professionals to live closer to work and essential services.

BENEFIT?

Affordable housing ensures the city can attract and retain skilled professionals in healthcare, education, and other essential sectors who might otherwise struggle with high housing cost

Transparency all over in the Dubai real estate sector gives confidence to the new buyers as well to own property with safety, right appreciation and guarantee, and if they find property expensive, then tokenization is another way to own property with a limited amount.

Now, if you want to know the process of buying or looking for secure, family friendly communities for investment, then Dubai Housing provides in-depth information on each of the availability to give you the right fit because legal assistance is the key to secure investment in Dubai.